Single Indicators

What are they?

• Solitary measures used to assess development

Financial Measures

• Single measures, like GDP and GNI per capita
• Purchasing power parity (PPP)

GDP per capita

• Total of all economic acitivity in a country, regardless of who owns it
• Divided by the number in population
• In developing countries, this is often higher than their GNI per capita

GNI per capita

• Total income earned by factors of production of country, regardless of location
• Divided by population
• In developed countries, this is often higher than their GDP per capita

Purchasing Power Parity (PPP)

• An exchange rate that equates the purchasing power of currencies of different countries
• Useful because things cost different amounts in different places

PPP continued

• Calculated by World Bank (this one is widely used)
• The Economist also calculates PPP using the price of Big Macs in different countries
• Burgernomics!